Uber, TfL, Lloyds Bank, and Chargepoint join UK green transport coalition

A host of leading businesses and experts spanning finance, transport, and energy have joined together to form a new coalition geared at accelerating the transition to zero emission vehicles in the UK and unlocking much-needed investment in green transport infrastructure.

Spearheaded by the Green Finance Institute (GFI), the Coalition for the Decarbonisation of Road Transport launched today and includes Uber, Lloyds Banking Group, Octopus Electric Vehicles, electric vehicle (EV) infrastructure firm Chargepoint, Lombard Odier, the Energy Savings Trust, and Transport for London (TfL).

Business bodies the Aldersgate Group and the Association for Renewable Energy and Clean Technology (REA), as well as investors such as SDCL and Prospedia Capital are also founding members of the coalition.

Dr Rhian-Mari Thomas, chief executive of the GFI, said bringing together experts from across the gamut of academia, energy, transport, finance, and infrastructure was key to overcoming the barriers hampering the flow of investment into decarbonising UK road transport.

"Identifying the most effective interventions and public investments in order to catalyse private sector finance requires thorough, detailed analysis as well as creativity and ingenuity," she said. "We're excited to be working with KPMG and our founding coalition members to tackle the challenge of financing the decarbonisation of road transport."

The coalition cites analysis undertaken by the GFI, with support from consulting giant KPMG, which estimates more than £150bn of gross capital investment may be needed to decarbonise the UK road transport sector between 2021 and 2030.

As such, a significant increase in investment in decarbonising road transport is needed over the coming decade, according to the group, which aims to focus on innovating consumer finance and leasing to boost EV uptake, as well as meeting growing demand for EV charging points.

It estimates more than 6.7 million EV chargers are required over the coming decade in order to serve the growing number of EVs on UK roads at a total cost of more than £20bn, which it said would require public and private sector collaboration to unlock the necessary finance.

Moreover, the coalition also aims to focus on enhancing battery manufacturing capacity in the UK in order to meet growing demand for EVs. Capacity for up to 60GWh of batteries each year may be needed by the end of the decade, which it said would require more than £5bn in investment.

Safe and sustainable battery disposal, as well as the creation of an environmentally sustainable supply chain, are also crucial issues to grapple with, it added.

The move comes as the UK government prepares to launch its long-awaited Transport Decarbonisation Plan, which is now expected to emerge this spring or in early summer following several delays.

Transport Minister Rachel Maclean welcomed the launch of the new Coalition today. "As we accelerate towards a net zero future, I'm delighted that government and industry are coming together to encourage more people to make the switch to zero-emission vehicles," she said.